2.1 Provisions / Contingencies
(a) Provision involving substantial degree of estimation in measurements is recognized when there is a present obligation
as result of past events and it is probable that there will be an outflow of resources.
(b) The company has Contingent Liability of Rs 1 Crore in respect of bank guarantee to HDFC Bank on the Borrowings
of Kandhari Textile Mills Private Limited.
(c) A Contingent Asset is not recognized in the Accounts.
2.2 Segment Reporting
A. Business Segments:
Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the
Company has only one reportable Business Segment, which is manufacturing of fabrics
B. Geographical Segments:
The Company activities / operations have so far been confined to India and as such there is only one geographical
segment.
Accordingly, the figures appearing in these financial statements relate to the Company's single geographical segment.
2.3 Foreign Currency Transactions
Foreign exchange transactions are recorded at the rate prevailing on the date of respective transaction. Monetary assets and
liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that
date. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported
using the exchange rate at the date of transacion. Exchange diffrences arising on foreign exchange transactions settled
during the year and on restatement as at the balance sheet date are recognized in the statement of profit and loss for the year.
2.4 Balance Confirmations
Balance of Debtors & Creditors & Loans & advances Taken & giving are subject to confirmation and subject to
consequential adjustments, if any. Debtors & creditors balance has been shown separately and the advances received and
paid from/to the parties is shown as advance from customer and advance to suppliers.
2.5 Regrouping
Previous years figures have been regrouped and reclassified wherever necessary to match with current year grouping and
classification.
2.6 Accounting Software
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change
made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be
disabled.
The Company uses the accounting software Busy for maintaining books of account. During the year ended 31 March, 2025
the Company had enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software Busy except that the audit trail feature of software used by the company to maintain payroll records did not
operate throughout the year ended 31.03.2025.
2.7 Bonus Issue:
The company has allotted 1,10, 00,000 Bonus Equity Shares of Rs 10 Each during the previous in the Ratio of 22:1 i.e. for
every Equity share 22 bonus shares were issued
2.8. Related Party Transactions:
The details of Related Party Transactions are enclosed
2.9 Others
Other Particulars/Disclosures as required by schedule-III are either Nil or Not Applicable.
2.10 Cash Flow
Cash flow statement is attached here with
On Behalf of the Board
For Kaytex Fabrics Limited
(Amit Kandhari) (Sanjeev Kandhari)
(Director) (Director)
DIN:01412828 DIN:01412837
ANNEXURE TO OUR REPORT OF EVEN DATE
For S G U R & Co
Chartered Accountants
FRN 005429N
(Sanjeev Gupta)
(Partner)
M.No. 084210
UDIN: 25084210BMJLVP6288
Dated: 03.06.2025
Place: Amritsar
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